Prepare Corporate Schedule M-1 using the information below:

Sales - $1, 000,000; Operating Expenses - $400,000 Book Depr. $50,000; Tax Depr- $70,000 & Sec. 179 – 50,000

Federal Tax Expense per Books = 110,000

Included in Operating Expenses is $10,000 of Meals & Entertainment.

Net income (loss) per books =?????

Income included on Schedule K, lines 1, 2, 3c, 4, 5a, 6, 7, 8a, 9, and 10, not recorded on books this year (itemize)

3 Expenses recorded on books this year not included on Schedule K, lines 1 through 12 and 14p (itemize): a Depreciation $ ?????

b Travel and entertainment $ ?????

4 Add lines 1 through 3 . . . . $ ??????. . .

5 Income recorded on books this year not included on Schedule K, lines 1 through 10 (itemize): a Tax-exempt interest $??????

6 Deductions included on Schedule K, lines 1 through 12 and 14p, not charged against book income this year (itemize): a Depreciation $ ??????

7 Add lines 5 and 6 . . . $ ??????. . . .

8 Income (loss) (Schedule K, line 18). Line 4 less line 7 . . . $ ?????

Answer rating: 100% (QA)

6 Add lines 1 through 5 505000 7 Income recorded on books this year no... View the full answer